Reversal under Rule 42/43

[Sachin Jain]

Dear Sir,

Advance received for Services in the month of March 2018 (GST discharged) and actual invoice raised in July 2018.

For the reversals under Rule 42/43, in which year turnover to include this transaction- 2017-18 or 2018-19 ?

Request you to provide your expert views along with relevant section and rules. Also, if this is to be included in year of advance receipt, then why how to estbalish the nexus between section 7- supply and section 13- time of supply.

AI Summary

Time of supply: advances for services treated at receipt determine turnover inclusion, requiring reconciliation with accounting.
Advances for taxable services are treated as supply at the date of receipt when invoice is not issued within the prescribed period, triggering turnover inclusion for GST; advances for goods are treated as deposits and are not taxable unless applied as consideration. Time of supply (GST liability) and accounting recognition (invoice date) differ, requiring reconciliation and disclosure in returns.